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Leokris [45]
3 years ago
14

What is true about the payments with closed-end credit?

Business
1 answer:
denis-greek [22]3 years ago
8 0

Answer:

C)They remain the same until the credit is paid off.

Explanation:

In a closed-end credit, borrower and lender agree on principal amount, interest rate and monthly payments. These features stay the same over time.

The most common types of closed-end credit are mortgages and car loans.

For example, if a person wants to buy a car on credit, they agree to pay a monthly amount, that includes both interest and principal payments, until the full amount is paid off in a specified date in the future. After the last payment, the right to ownership of the car is transferred from the borrower to the lender, closing the credit.

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Please select the economic term that is best described by each statement. People have limited resources. entrepreneurship margin
dlinn [17]

Answer:

scarcity

tradeoffs

Explanation:

Humans have unlimited wants and the resources available to satisfy this wants are limited. Thus, humans have to choose the most important wants and give up less important wants.

For example, if you have $20 and you want to buy a textbook , ice-cream or jeans. Each cost $20. If you need the textbook to study for a test, you would choose the book. Here $20 is the scarce resource. jeans and ice cream are what you traded off

6 0
3 years ago
Roosevelt launched the second new deal because of the failure of his initial policies to pull the country out of the depression
Hitman42 [59]
The second deal focused on social welfare to ease the problem brought by the great depression. The goals were: social securities for retirement, employment for those who are unemployed; health services, housing for illegal settlers and improvement on national resources.
7 0
3 years ago
Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9
murzikaleks [220]

Answer:

d. 5.08%

Explanation:

We have to first calculate the YTM of the bond, and then apply the tax shield.

To get the YTM we have to calculate the rate of return of an annuity of 46.25 for 20 years compounding semiannually at IRR rate and the present value of the face value redeem in 20 years.

C \times \frac{1-(1+r)^{-time} }{rate} +Face\:Value/(1+rate)^{time}= PV\\

46.25 \times \frac{1-(1+IRR/2)^{-20*2} }{rate} + 1000/(1+IRR)^{20}= 1075\\

IRR = 0.084656891 (it should be done using financial calculator or excel or a similar software program)

then we apply the shield tax to the IRR:

IRR x (1 - tax-rate) = Cost of debt

0.084656891 * ( 1 - 0.4) = 5.0794= 5.08

3 0
3 years ago
Kane manages a used bookstore. He reads a report advising him to stock
sergeinik [125]

Answer:

I would say that the answer is D. If he knows that people don't buy encyclopedia's, yet he stocks them, the store could lose money because no one would buy it.

Explanation:

Hope this helps. :D

4 0
2 years ago
Read 2 more answers
At the end of the period, the balance left in the factory overhead account is equal to the
katrin2010 [14]

Answer:

d.total factory overhead cost variance.

Explanation:

In manufacturing accounting, at the beginning of the period, manufacturing overheads (i.e. costs other than Direct Material and Direct Labor) has been applied to Work-in-process using a predetermined overhead rate. At the end of the period, if the manufacturing overhead account shows a debit balance, that signifies that overhead has been under-applied (i.e. the manufacturing overhead cost applied to work in process is <u>less </u>than the actual manufacturing overhead cost for the period), and contrariwise if the manufacturing overhead account shows a credit balance, it means the overhead is over-applied (i.e. the manufacturing overhead cost applied to work in process is <u>more </u>than the actual manufacturing overhead cost for the period). In any case this balance warrants an adjustment to close out the books, by transferring it to the cost of goods sold account.

6 0
3 years ago
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